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Agrocel Industries Ltd (Agrocel) is a unique social enterprise operating in the agri-business space since 1988. Promoted by the Kutch-rooted Shroff family, Agrocel focuses on the twin objectives of commercial viability and social/environmental benefits of providing gainful employment to the local populace and to check migration from Kutch. Agrocel operates agro service centres that provide expert technical guidance free-of-cost; offers high quality inputs at reasonable price and takes care of output marketing with value additions.
Genesis
Agrocel started as a partnership venture of the Shroff family and Gujarat Agro Industries Corporation (GAIC) with the objective of providing farmers with the right kind of inputs, at the right time, along with education on their use and buying back the produce at remunerative prices. The primary target at the time of inception was small farmers working in the harsh agro-climatic conditions of Kutch. The company is fully owned by the Shroff family and the operations have expanded to 21 centres in eight States, but the focus still remains on helping small farmers grow and market cash crop in a sustainable manner.
Historically, the Shroff family had a strong nationalist outlook and social commitment, which is reflected even in the mainstream companies promoted by the family such as Excel Industries and Excel Cropcare.
These companies have promoted social development at every place of the organisation's operations, which focus on participatory resolution of local issues under the supervision of an appointed management committee. The various developmental organisations promoted /supported by the family in its native Kutch region like Shroff Foundation, Vivekanand Research and Training Institute, Krish Vigyan Kendra Mundra, Gramodyog Society and Shrujan have contributed to the socio-economic development of Kutch, which is agro-climatically the most challenging terrain in India. Though Shrujan is founded as a trust, it has evolved a self-sustainable business model by harnessing the traditional embroidery skills of Kutch women, and blending it into artefacts preferred by the urban upper class market.
To add a purely commercial capital driven dimension to these efforts, Mr K.C. Shroff and (late) Mr C.C. Shroff decided to set up an industry wherein the raw material, which is readily available in this region, can be utilised to manufacture quality products, thereby, generating local employment and providing alternate sources of revenue for rural people. Thus, Agrocel started the marine division to extract valuable chemicals from abundantly available sea water and the Agro Service Division to promote value addition of local agro produce.
Business Model
The business model of the agro service division is based on the provision of integrated services to farmers, both on the input and output sides.
Input side interventions
Crop improvement
Supply of good quality inputs, including seeds of improved varieties and hybrids
Organise crop loans for farmers
Promotion of integrated crop management (ICM) and organic farming
Land and water management
Drip irrigation systems
Soil structure and fertility management
Soil reclamation - for salinity or acidity
Nutrient management
Crops and cropping systems
Soil and water testing
Use of organic manures
Proper and balanced use of fertilisers
Pest and disease management
Identification of pests and diseases
Forecasting of pest and disease problems
Prevention ad cure of pests and diseases
Proper and rational use of bio-pesticides and chemical pesticides
Use of integrated pest management (IPM) and integrated crop management (ICM) technologies
General
Repairs and maintenance of bore wells, electric motors and pumps by promoting local entrepreneurs as independent profit centres
Artificial insemination for cattle breeding in association with the NGOs
Help farmers to avail themselves of Government schemes, subsidies, crop insurance, schemes of other NGO's /donors by acting as an intermediary
Organise education tours
Though some of these interventions are offered free-of-cost, Agrocel considers them not as charity but as an investment in building livelihood for farmers, and fostering the relationship with Agrocel.
Output side interventions
The objective of output side interventions is to provide an alternate market (with better revenues) to farmers, and to meet their demand for a reliable organic and fair-trade produce. Agrocel, in alliance with Vericott Ltd of the UK and Traidcraft Exchange od the UK, has defined and launched its own brand – Agrocel – pure and fair Indian organic produce.
Agrocel is the pioneer and leading proponent of organic cotton in India. Through its 17 ASCs, spread across India, it co-ordinates organic fibre cultivation with a select group of local farmers. A team of agronomists based at every ASC, remains involved in the entire process of cultivation – right from field preparation, providing planting material and agri-inputs, crop care, harvesting to post-harvest management – ensuring compliance to stringent international certification standards.
Agrocel offers a wide range of products under the Agrocel brand. The main focus is on certified fair trade and/or organic products in cotton, paddy, sesame, groundnut, cashew, wheat, mustard and gram.
Social Impact
The farmers associated with Agrocel benefit in a variety of ways. First and foremost benefit is continued access to reliable knowledge and quality inputs which help the farmer in reducing the cost of cultivation and improving the soil health, thereby, long-term productivity of his farmland. Agrocel offers to buy farmers' produce at a price better than the prevailing market price, thereby, upfront transferring some benefits of premium earned on organic / fair trade produce. Agrocel also invests in organising farmers in community groups and support them in conducting activities of communal benefit by provide monetary contribution as a “social premium” for growing fair-trade products.
Different farmer groups have used this “social premium” for a different type of locally desirable purposes. For example, the basmati farmers group in Haryana has bought a level operated paddy field leveller which has further boosted their paddy productivity and farmers from Kutch have used the premium to arrange drinking water for a village. In areas facing soil salinity problem, the social premium has been used for soil reclamation. Thus, about 45,000 farming families and villagers around them are benefiting from this unique social enterprise.
07 June, 2010 by admin